Think about that monthly fee that you pay for your health insurance premium or your life insurance premium or your car insurance. That’s a lot of money every single month. Insurance companies make a ton of money from your insurance premium betting that nothing extremely bad happens to you.
As long as you nothing bad happens, insurance companies collect that money from you. And even if you are a high-risk client, they’ll just charge you even more for that insurance premium.
If you’ve been driving for 20 years and never got into an accident, you paid let’s say $100 a month * 12 months in a year * for 20 years = $24,000
And that’s just for $100 a month. What if you pay more?
And that’s just automobile insurance.
What health insurance, dental insurance, flood insurance, life insurance, and any other kind of insurance?
Every month someone else is making a lot of money from your monthly insurance premium. And guess what. The money they make from premiums ALWAYS exceeds what they pay out in unlikely events — otherwise they wouldn’t be in business.
Wouldn’t it be nice if you could flip the tables in your favor instead?
Wouldn’t it be nice if it YOU could be the one collecting that insurance premium instead of someone else?
Wouldn’t it be nice if you could collect that money every single month?
Better yet, what if you could that every single week?
And what if you could choose exactly which kind of insurance contract you want to take on and which ones you don’t.
That’s right — what if you can be that picky?
Well, ladies and gentleman, in today’s global financial system — that is indeed possible.
And I’m not talking about getting a job as an insurance agent.
I’m talking about something that anyone with a bank account can do.
I’m talking about participating in the global financial system as if you were selling insurance.
Except instead of selling health, life, or auto insurance — you’re selling insurance on the stock market itself
What you’d be selling is something called options.
Yes, I know – sounds really fancy and complicated and scary.
That’s because most people who know about options buy them.
Did you know you could actually sell them?
That’s right you can sell options — and option premiums are just like insurance premiums.
There are new option contracts every single month — and relatively recently — option contracts are available every single week.
And that’s part of what we do–capitalize on the most reliable and known attribute of these new financial products called weekly options.
They’re called weekly options.
Weekly options = insurance contracts.
Sell the weekly options and you’re effectively selling insurance contracts.
As long as the stock or index price does not do what your option says it won’t, then you collect a weekly premium — that’s money you collect as long as nothing crazy happens.
You get to pick which expiration, which strike price, which underlying, etc — so you choose which terms you want in your contract.
And the value, or premium, of what you can get for selling that option insurance contract is publicly available.
All you need to do is decide which option contract (or combination or contracts) you should take on so as to minimize the risk of an “event’ occurring.
As each day goes by towards Friday expiration — you automatically collect some money.
Let’s say a $1.00 option has roughly $0.30 of time value.
Each day, the option loses a few cents of value just because time passes by and we approach Friday expiration.
Once Friday expiration arrives, all of that $.30 will be gone and you’ll be left with $0.70 — as long as the other 70% portion doesn’t change.
30 cents out of 100 cents is 30% — that’s a significant amount. The tricky part is that we don’t know what will happen with the underlying — what happens to that other $0.70. It’s possible it could increase dramatically against you, and it’s also possible that it goes to 0.
But if we believe the underlying stock will not move much, then selling the option will net you that $0.30. If you scale this to a lot of contracts, you could make a lot of money!
There are a lot more details, of course, but that’s the basic idea. Sell option contracts when you believe stocks won’t move that much and you’ll make some extra money.